3. A competent authority that comes to the conclusion that product classes in a given trading desk are booked back-to-back with those of another entity of the group that is outside the scope of the highest level of consolidation within the Union, and that such back-to-back booking hinders the competent authority to assess whether the internal risk-measurement model has a proven track record of being reasonably accurate in measuring risks corresponding to those product classes, may do either of the following:
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(a)
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require the institution to remove the positions corresponding to those product classes from that trading desk;
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(b)
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refuse to grant the permission to calculate the own funds requirements in accordance with the internal model approach for that trading desk.
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